Trade Finance

Trade Finance linked to Asset Example:

We were recently asked by to assist one our clients who had sourced a machine in Turkey, which was pre-sold to a company in the UK. The UK Company had an asset finance facility agreed. The machine was to be inspected prior to shipment by Societe Generale de Surveillance and payment was required by way of a letter of credit in favour of the Turkish supplier. We firstly confirmed the order with the ultimate purchaser and then contacted [Asset Finance Company] who agreed that they would accept an invoice from Trade Finance and pay in accordance with our instructions. The letter of credit was opened and the machine arrived in the UK.

Put Trade Finance into your Company

To put trade finance into your company contact Phillip Evans today email: phillip.evans@enablefinance.com or call 0845 070 20 50.

Trade Finance Linked to Invoice Factoring:

A new start company dealing in textiles: This company used to manufacture in the UK and was a family owned company run by Father (now our client), Mother and two sons. Unfortunately the Mother died and the Father decided to go on a round the world yachting holiday (with boats being his passion), to get over the trauma. He left the business in charge of his two sons and was away for two years. When he returned the business had declined, although, was still marginally profitable and the two sons wished to go and pursue other interests. It was apparent to our client that manufacturing was not the way forward and he decided to establish alongside the existing business, an importing company. Utilising his contacts and establishing a small but elite team to help him run the business, he landed a major order from (Major PLC) for cushions, throws and dog/cat baskets. Having done a small amount of importing in the past he established an office in Hong Kong to assist him with Chinese production and in particularly quality control. The new start business had £100 share capital and need to open £350K worth of letters of credit to satisfy the Next order and to factor the resultant debtors. Profit margins on these products are 30%+ and (Major PLC) have proved to be excellent payers. The company are now turning over £5M+, and their dependence on the support from Trade Services has dwindled but now use Invoice Discounting to fund their growth.

See how trade finance could help your business

To discuss trade finance options or to see if letters of credit could be right for your domestic or international business call Phillip Evans direct of 01623 812 902 / 0797 0500 425 or email phillip.evans@enablefinance.com